News Article C&W Czech republic Industrial report
by Property Forum | Report

Interest in the industrial and logistics space in the Czech Republic has reached a record height, rising 50% in the years 2019 and 2023 comparison. The growth in interest continued in the first four months of this year. Cushman & Wakefield is presenting data based on its record of enquiries.

Most enquiries are from manufacturing companies, in total more than 1.3 million sqm of production space, which is 44% of the area in demand. The demand for larger premises between 10 and 50 thousand sqm has increased. However, the time from the initial enquiry to the signing of a lease agreement is lengthening, so this interest will not be reflected in actual take-up until 2025.

In total, there were over 400 unique enquiries. The interest growth continues this year: in the first four months of 2024, Cushman & Wakefield recorded over 100 leasing enquiries in the Czech Republic, totalling over 700,000 sqm.

"The statistics of the leased space (take-up) show a decline, whereas the interest in space is growing. Tenants now need more time to decide. For example, merging multiple production facilities into one site can take months, sometimes even years,“ explained Jiří Kristek, Head of the Industrial and Retail Warehousing Team at Cushman & Wakefield.

Interest from logistics companies amounted to over 900,000 sqm of warehouse space, 32% of the total area. Before 2019, the demand for these two types of companies was balanced. In the last two years, enquiries for larger spaces of between 10,000 and 50,000 sqm have increased, accounting for 25% of enquiries last year.

Same as in 2019, last year the greatest demand for space was in the established locations in Prague, Pilsen, Brno and Ostrava. While almost 75% of enquiries targeted these locations pre-covid, last year's figure was 55%. Sites near motorway junctions – D5 near Pilsen, D1 near Prague and the Brno area – are wanted by logistics companies. The demand is also heading to other regions – especially from manufacturing companies targeting the north of Bohemia and Moravia: the Ústí nad Labem, Liberec and Moravia-Silesia regions.